The Application Of Receivables Securitization On Pharmaceutical Distribution Businesses

Accounts receivable is equivalent to an interest-free loan to an enterprise,although it is a way for companies to competitive with other competitor and occupied the market.However,if the accounts receivable accounts for the total amount of assets are too big,it is unfavorable in long-term operation for firms.Enterprises need to solve the problem of shortage of funds,bear the "interest-free loans" cost.Pharmaceutical distribution industry has common characteristics with low gross margin;inventory and accounts receivable accounts has high proportion of total assets of the industry,distribution companies rely mainly on cash flow and cash flow rate of rapid iteration to generate profits.The pharmaceutical distribution enterprises' bargaining power is weak,with sales process would produce a large number of accounts receivable.The industry accounts receivable accounts for the proportion of total assets as much as 40%,so how to use accounts receivable financing for such enterprises is of great significance.Based on the combination of qualitative theory and quantitative data,it is concluded that "double-high" enterprises with high accounts receivable ratio and high asset-liability ratio are suitable for financing with account receivable securitization.In order to illustrate the feasibility of this approach,the author of the industry leader G,for example,combined with the actual situation of receivables securitization product design deduction through the securitization financing G companies operating indicators have been enhanced while the company value,Capital structure has also been optimized.In this paper,the product design from the company perspective as the starting point concerned about the company in the actual operation of G and internal descendants in the screening of assets in the transfer of attention;in the choice of intermediaries and transactions may choose;and third-party creditor investor relations,The process of securitization enterprises may encounter problems and solutions,hoping to bring to the enterprise through product design reference.In this paper,I combined the theory with practice hoping to make a contribution for those companies which has tighten by funds,but accounts receivable accounts for large companies in the future financing decision-making to provide some reference to reference and operational reference.